We should be proud that we are Filipinos for it is only us who can make this nation great again.. but are we up to it? This is originally a book idea which I thought of writing but for now we are putting it as a blog where you can post or send your sentiments about being a Filipino.. happiness, triumphs and frustrations. All are invited to become contributor to this blog.

Saturday, July 5, 2008

IBON just released its news and suggestion about bringing back oil regulation. I think the government shouldindeed regulate it so that the public will not get the brunt of the suffering from the ever rising oil prices.

Here is the report from IBON:

Oil prices have increased by an average of 50% over the past year, highlighting the failure of oil deregulation in bringing down petroleum prices and the urgency of reinstating regulation, according to independent think-tank IBON Foundation.Between June 2007 and June 2008, average pump prices of unleaded gasoline and diesel have increased by 47% and 52%, respectively.

Further, since the start of deregulation in 1996, pump prices of unleaded gas have increased by 492 percent. Meanwhile prices of diesel have increased by 607 percent.

Oil deregulation was supposed to ensure affordable and accessible petroleum products by breaking up the local oil cartel, allowing "market forces" to determine the real price of oil. Instead, it only gave Shell, Petron and Chevron (formerly Caltex), more room for speculation and to dictate prices and price hikes. IBON estimates that as much as 47% to 54% of the pump price of petroleum products represents windfall profits of the oil firms.

An effective way to break up the monopoly control of the oil firms over the local downstream oil sector and ensure affordable and accessible oil products is to revoke the oil deregulation law and give the government regulatory authority over the oil industry. (end)

IBON Foundation, Inc. is an independent development institution established in 1978 that provides research, education, publications, information work and advocacy support on socioeconomic issues.